Richter v. Industrial Finance Co. Inc.

WUEST, Circuit Judge.

This is an action on seven separate promissory notes. They were originally executed by Industrial Finance Company, Inc., and delivered to plaintiff on or about the dates they bear. Except for two of the notes, they were marked “Subordinated.”

*469Industrial Finance Company had borrowed large sums of money from several banks. The banks had directed Industrial Finance to obtain subordination agreements from individual creditors. When the plaintiff, Francis Richter, obtained the notes, he signed subordination agreements which provided the notes were subordinate to the obligations…